The City of Dover will receive sealed proposals on October 20, 20174 ...
Request for Proposal
September 18, 2017 To Whom It May Concern: The City of Dover will receive sealed proposals on October 20, 20174 at 2:00 p.m. local time for the purpose of contracting for ELECTRIC UTILITY COST OF SERVICE & RATE DESIGN STUDY, RFP NUMBER 18-0009CM. The RFP must be submitted electronically via email to [email protected]. All vendors must complete the request for proposal (RFP) notice and send it to fax (302) 736-7178 or email [email protected] if they intend to submit a proposal. Any vendor not returning the form may not receive published addenda.
Your proposal is not revocable for ninety (120) days following the response deadline indicated above. LATE SUBMISSIONS: A proposal received after the closing date and time for receipt of the proposals is late and shall not be considered. It is the responsibility of the submitter to ensure that the proposal is received prior to the closing date and time. OUESTIONS: If you have questions concerning this Request for Proposal, they must be made in writing and emailed to me at [email protected]. All questions must be submitted no later than October 2. 2017. All questions will be compiled and answered in the form of an addendum and will be emailed to all prospective bidders who return the RFP solicitation form attached and will be posted on the City of Dover web site, www.cityofdover.com. All changes or corrections to this Request for Proposal will be handled by addenda issued by the Purchasing Office. The receipt of all Addenda must be acknowledged on the proposal submission form. The City of Dover reserves the right to request corrections, clarifications, and/or additional information pertaining to Respondent's response. It has been determined that this solicitation be offered as a request for competitive sealed proposals, pursuant to Delaware Code Title 29, Chapter 6924 (a), because the use of competitive sealed bidding is not in the best interest of the City. The use of competitive sealed proposals is necessary to:
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Use a contract other than a fixed price type; Conduct Oral or written discussions with offerors concerning technical and price aspects of their proposals; Afford offerors an opportunity to revise their proposals; Compare the different price, quality and contractual factors of the proposals submitted. Award a contract in which price is not the determining factor.
Request for Proposal
Proposals will be opened publicly at the time and place designated in this letter. The name of each offeror shall be read publicly and recorded. All other information contained in the proposals shall be confidential so as to avoid disclosure of contents prejudicial to competing offerors during the process of negotiation. The main purpose of the bid opening is to reveal the name(s) of the bidder(s), not to serve as a forum for determining the low bidder(s). The contract shall be awarded within 120 days of the closing date to the offeror whose proposal is determined in writing to be most advantageous to the City. All prices must be held firm for a minimum of 120 days from the date of the opening. The proposals, summaries, and tabulations shall not be open for public inspection until after receipt of a fully executed contract. Conflict of Interest Clause: Pursuant to Dover Code, Chapter 30, Section 30-33, No city employee or official may participate on behalf of the city in the review or disposition of any matter pending before the city in which he has a personal or private interest. No city employee or official shall benefit from any contract with the city, nor solicit any contract, and shall not enter into any contract with the city (other than an employment contract). No person who has served as a city employee or official shall represent or otherwise assist any private enterprise on any matter involving the city, for a period of two years after termination of his employment or elected or appointed status with the city, if he gave an opinion, conducted an investigation or otherwise was directly and materially responsible for such matter in the course of his official duties as a city employee or official. All parties hereto declare and affirm that no officer, member, or employee of the City, and no member of its governing body, and no other public official of the City who exercises any functions or responsibilities in the review or approval of the undertaking described in this contract, or the performing of services pursuant to this contract, shall participate in any decision relating to this contract which affects his or her personal interest, or any corporation, partnership, or association in which he or she is directly or indirectly interested; nor shall any employee of the City, nor any member of its governing body, have any interest, direct or indirect, in this contract or the proceeds thereof. The City of Dover reserves the right to waive technicalities, to reject any or all bids, or any portion thereof, to advertise for new proposals, to proceed to do the work otherwise, or to abandon the work, if in the best interest of the City. All proposals are to be received by the Procurement Office, 710 William Street, Dover, DE, 19904 no later than the 2:00 p.m. bid opening. All proposals will be opened in the presence of the Procurement Manager or his/her designee. The name of each offeror shall be read publicly. All other information contained in the proposals shall be confidential so as to avoid disclosure of information prejudicial to competing offerors during the negotiation process. Any and all proprietary information contained within the proposal must be clearly marked. The cover must indicate that the proposal contains such information. Copies of the proposals will not be provided to competing vendors. Minority, women, veteran, service disabled veteran, and individuals with disabilities owned vendor preference shall be three percent (3%) of the value of the award. The vendor must identify qualification and claim to the preference on the submitted proposal documents. The vendor must provide authoritative proof of minority ownership such as identification in the certification directory maintained by the State of Delaware Office of Supplier Diversity to qualify for this preference. This preference is to be considered as a stand-alone and cannot be added to any other preference that may be allowed. This preference shall not apply to subcontractors. 2 of 4
Request for Proposal
In the event the contractor does not fulfill its obligations under the terms and conditions of this contract, the City of Dover may contract for an equivalent product on the open market. Any difference in cost between the contract prices herein and the price of open market product shall be the responsibility of the contractor. Under no circumstances shall monies be due the contractor in the event open market products can be obtained below contract cost. Any monies charged to the contractor may be deducted from an open invoice. Neither the contractor nor the City of Dover shall be held liable for non-performance under the terms and conditions of this contract due, but not limited to, government restriction, strike, flood, fire, or unforeseen catastrophe beyond either party's control. Each party shall notify the other in writing of any situation that may prevent performance under the terms and conditions of this contract. Vendors must provide references to the City of Dover upon request. Vendor references may be checked to verify the proposer’s ability to perform the contract requirements, the quality of work and the ability to meet obligations. Proposals must be submitted electronically by email using the email address [email protected]. The computerized date/time indication on the electronic submission will be the sole determination of receipt. All electronic proposals submitted by email must reference RFP number (18-0009CM) in the subject line of the submission or they will not be considered. Failure to comply with the above format may result in disqualification of your quote. The City of Dover shall have the right to reject any or all proposals if deemed to be in the best interest of the City, such as but not limited to local vendor preference and minority vendor preference while awarding bids. Sincerely,
Peter K. Gregg Contract and Procurement Manager City of Dover (302) 736-7795 Fax (302) 736-7178 [email protected] www.cityofdover.com
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Request for Proposal
REQUEST FOR PROPOSAL SOLICITATION NOTICE RFP Number: 18-0009CM
RFP Opening: October 20, 2017, 2:00 p.m.
Description: Electric Utility Cost of Service & Rate Design Study If you are interested in the request for proposal described above, you can download it in Adobe PDF format from our web site http://www.cityofdover.com/bid-procurement. Any amendments of other additional information related to this solicitation will be posted with the original document on the web site. If you do not have internet access and want to receive this request for proposal, all subsequent amendments, or additional information on the bid package, please provide the requested information to: The City of Dover Purchasing Office 710 William Street Dover, DE 19904 Fax: (302) 736-7178, attention Peter Gregg Phone: (302) 736-7795 e-mail: [email protected] Please complete the following and return this form to Central Services: Company: Address
Vendor Response /Request No bid at this time, please retain on bid list Please send complete RFP package
Contact:
I will download the RFP package
Phone
I intend to bid
Fax e-mail for ITB/RFP
I do not intend to bid
4 of 4
Other:
City of Dover
Request for Proposal (RFP) 18-0009CM For
Electric Utility Cost of Service & Rate Design Study
September 18, 2017
REQUEST FOR PROPOSAL
PROPOSAL DESCRIPTION
Electric Cost of Service and Rate Design Study
DUE DATE & TIME
October 20, 2017 @ 2:00PM Proposals received after this date and time will be deemed unresponsive and returned to the sender unopened.
MAILING
The City of Dover Purchasing Office 710 William Street Dover, DE 19904 Email: [email protected] Mr. Peter Gregg Phone (302) 736-7795 Fax (302) 736-7178 www.cityofdover.com/bid-procurement
ADDRESS
SPECIFICATION CONTACT
SCOPE
The City of Dover is seeking proposals for the completion of an electric cost of service and rate design study to include: electric cost of service, long term financial projections and recommendations, future rate design, and value of solar determination
THIS REQUEST FOR PROPOSAL ("RFP") PACKAGE INCLUDES THE FOLLOWING SECTIONS: •
GENERAL INSTRUCTIONS
•
SPECIFIC INSTRUCTIONS
•
SCOPE AND SPECIFICATIONS
2
GENERAL INSTRUCTIONS 1.
To be considered, all proposals must be received by the City of Dover not later than the due date and time. Any proposal received after the specified time shall not be placed under consideration. Proposals may be withdrawn, altered and/or resubmitted at any time prior to the time set for opening.
2.
Proposers are requested to submit each proposal via e-mail to: [email protected]. All emails must reference RFP number 18-0009CM in the subject line.
3.
Questions: Proposers are requested to submit; via e-mail using the format described below, any questions or clarifications they may have in reference to this RFP. TO: dov [email protected]. Dover representatives will respond via e-mail to e-mailed inquiries. All emails must reference RFP number 18-0009CM in the subject line.
4.
Proposals shall be reviewed and discussions conducted with responsible respondents who submit proposals determined to be reasonably susceptible of being selected for award. Discussion will not disclose any information derived from proposals submitted from others. Awards shall be made to the responsible proposer whose proposal is determined to be most advantageous to the City of Dover Electric Utility (Dover). Dover will, at their sole discretion, evaluate responsive proposals to determine which will provide the greatest value. Dover reserves the right to negotiate and contract with any firm it deems suited to provide the desired services. It also reserves the right to accept or reject any or all proposals, to waive irregularities and technicalities and to request resubmission of additional information.
5.
Documents Submitted: All documents submitted in response to this RFP become the property of the Dover upon delivery and may be appended to any formal documentation that would further define or expand the contractual relationship between Dover and the Proposer. Each Proposer, as an express condition for Dover’s consideration of such Proposal, agrees that the contents of every other Proposal are confidential and proprietary, and waives any right to access to such documents. No submission or supporting documentation will be returned to Proposer except as part of the contract with a successful Proposer. Those submitting Proposals should recognize that the Dover is a public body and, as such is subject to the disclosure requirements of Delaware’s public records law and must abide by those public record laws.
6.
Confidential Information: Any information provided, including knowledge of this RFP, is to be held strictly confidential and, upon conclusion of this process, destroyed in its entirety. Any breach of this confidentiality will result in automatic exclusion from consideration and all rights and remedies under the law will be pursued in full.
7.
Failure to comply with any of the instructions in this RFP package may result in the proposal not being placed under consideration for bid award.
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SPECIFIC INSTRUCTIONS FOR PROPOSALS Contact Information: All correspondence concerning any questions about this RFP and its attachments, conflicts, errors, ambiguities, or discrepancies discovered by Proposer in or between the documents contained in the RFP or other relevant documents, shall be directed via e-mail to the City Purchaser, Mr. Peter Gregg ([email protected]). Failure on the part of any Proposer to make a careful examination of the RFP documents or to investigate thoroughly the conditions of the RFP shall not be grounds for a declaration that the Proposer did not understand the RFP package. Proposal Format and Organization: Proposals shall adhere to the following format: All pages shall be sequentially numbered and a table of contents shall be provided. The page size shall be 81/2 x 11 inches (Note: Tables and graphics can vary from this requirement). Information to be submitted: Proposals must include but need not be limited to the following information: 1. Sufficient information and detail shall be submitted with the proposal to permit Dover’s full understanding of the proposal offered. 2. Proposer shall include in the proposal a brief summary of their company's profile that identifies pertinent details for management of the activities described in this specification. Including: Company background, personnel, resumes of anticipated study team, relevant experience, and past and present client listing and references. 3. Provide a discussion of the proposed study deliverables, value provided to Dover and pricing structure. 4. Provide a discussion of the proposed study process, methodology, analysis techniques, data gathering. 5. Proposer shall provide a detailed study task list and schedule. 6. Discuss assumed expectations from customer including, but not limited to, project management available operating data and information availability. 7. Proposers should provide an anticipated "Table of Contents" associated with the final report. Proposal Evaluation: Dover will review all Proposals for completeness and adherence to the requirements of this RFP. All Proposals will be reviewed based upon the criteria contained in the following section of this RFP. Proposers must have the necessary experience, organization of team, and financial capability to fulfill the components of the Evaluation. Dover reserves the sole right to determine the sufficiency of the experience and qualifications of all Proposers. Specific factors for evaluation criteria have been established to assist Dover in determining which Proposal will provide the best overall value. These factors are listed below:
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Proposal Evaluation Criteria: Factors to be considered in the evaluation in addition to pricing include: a. Financial stability of organization b. The qualifications and experience of the lead person(s) and any other individuals assigned to the project, as well as the firm's depth of staff and availability of resources. c. Demonstrated record of firm's experience in the area of Utility Cost of Service and Rate Design d. Demonstrated understanding of situation and needs. e. Demonstrated ability to meet requirements of Scope f. Integrity/reputation of organization g. Experience in similar situations h. Proposed implementation process, and corresponding proposer's leadership during implementation. i. Overall completeness, clarity and quality of the proposal and responsiveness to the requirements of the RFP. Contract Price and Schedule: Dover is requesting the proposer provide fixed pricing for the work as defined in the services included in the Scope Section of this RFP. In addition to the pricing requested, the proposer is also requested to submit a timeline, with a final report delivery no later than February 28, 2018, and a project milestone payment schedule. RFP Proposed Evaluation Schedule: Presented below is the anticipated schedule of completion dates for the RFP Proposal Evaluation Process: Release RFP Proposal Submittal Deadline Utility Committee Approval City Council Approval Contract Awarded Final Report Issued
September 11, 2017 October 20, 2017, 2:00 p.m. November 14, 2017 November 27, 2017 November 28, 2017 February 28, 2018
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DESCRIPTION, SCOPE & TECHNICAL SPECIFICATIONS Purpose: The City of Dover Electric Utility (Dover) is seeking proposals from qualified consulting firms to complete a Cost of Service and Rate Design Study for the Dover’s electric utility. Included in this effort should be; long term financial review with projections and recommendations, electric cost of service, rate design review and recommendations, development of a "voluntary green pricing program" and a review of Dover billing and rate related policies. Background: The City of Dover Electric Utility is a municipally-owned Electric Utility operating within74 square-miles in Kent County, Delaware, including 24 square miles in city limits of Dover, Delaware that serves approximately 23,500 electric customers of which approximately 20,000 are residential. Currently, the Dover Electric Utility has 147 net MW of accredited generating capacity (2 generating units) which is owned and operated by the Utility along with several bi-lateral agreements for energy and capacity. The Dover Electric Utility served a monthly average of 23,621 accounts in fiscal year (FY) 2017, approximately 20,155 of which were residential customers. Five of the Electric Division customers take service from the 69-kV transmission system. These customers include the Dover Air Force Base, Kraft, Proctor & Gamble, White Oak Solar and NRG Energy Center (NRG). NRG is an exempt wholesale generator that sells power that must be transmitted through the City’s transmission system to third party purchasers. When the NRG plant is not operational, the Dover Electric Utility provides power for the plant site. Dover is a Network Integrated Transmission System customer operating in the PJM Regional Transmission Operator area. Fiscal Year 2017 customer mix is shown in the following Table 1. Table 1 — FY2017 Customer Classification and Revenue FISCAL YEAR 2017
ELECTRIC
R RESIDENTIAL CUSTOMERS
20,155 85.3%
COMMERCIAL & INDUSTRIAL CUSTOMER ACCOUNTS 3,466 14.7%
RESIDENTIAL CUSTOMER NET SALES REVENUE
COMMERCIAL & INDUSTRIAL CUSTOMER NET SALES REVENUE
$26,427,757 32.8%
$54,196,424 67.2%
The Dover City Council provides oversight and direction for utility operations as well as approval over rate and budgetary matters. Dover Operational Information: All past and current cost of service data and sales by customer class will be provided to the successful Respondent. Table 2, below, shows the sales and revenues associated with the utility for the past five years.
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Table 2 — Historic Sales and Revenue ELECTRIC SALES
ELECTRIC REVENUE
(MWh)
($)
Year' (6/30) 2013 2014
729,811 720,875
$91,948,000 $78,187,300
2015
723,111
$78,278,500
2016
713,334
$79,155,000
2017 unaudited
737,014
$80,100,300
i. Based on Dover’s fiscal year.
Scope of Work: Dover is seeking a comprehensive third-party review of the Electric utility financials. This review should the completion of a cost of service study and a rate design study to include the deliverables as listed below. Dover also would like copies of the modeling used. The development of a "voluntary green pricing program". The development of the above mentioned "green pricing program" should consider that the City of Dover Electric Utility is not regulated by the Public Service Commission. The City currently has a power supply agreement for solar with LS Power. Deliverables: Consultant will present to the Dover City Manager an interim report and the opportunity for comment that will include but not be limited to the following:
Electric Utility Revenue Requirements for test year Modeling assumptions Forecasts Cost of Service Electric Cost Unbundling Recommended Rate Adjustments Lighting tariff revisions for current tariffs as well as new tariffs for LED’s Review and discussion of Dover financial policies Preliminary rate recommendations and rate development description Preliminary rate assumptions and program recommendations associated with a voluntary green pricing program. Dover comparison of various rate classifications. Review of Dover’s Power Cost Adjustment Mechanism and recommendations for changes
Consultant will also present a final report including the items contained in the interim report to include Dover’s input. Consultant may be asked to present results to the City of Dover Utility Committee.
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September 18, 2017 To Whom It May Concern: The City of Dover will receive sealed proposals on October 20, 20174 at 2:00 p.m. local time for the purpose of contracting for ELECTRIC UTILITY COST OF SERVICE & RATE DESIGN STUDY, RFP NUMBER 18-0009CM. The RFP must be submitted electronically via email to [email protected]. All vendors must complete the request for proposal (RFP) notice and send it to fax (302) 736-7178 or email [email protected] if they intend to submit a proposal. Any vendor not returning the form may not receive published addenda.
Your proposal is not revocable for ninety (120) days following the response deadline indicated above. LATE SUBMISSIONS: A proposal received after the closing date and time for receipt of the proposals is late and shall not be considered. It is the responsibility of the submitter to ensure that the proposal is received prior to the closing date and time. OUESTIONS: If you have questions concerning this Request for Proposal, they must be made in writing and emailed to me at [email protected]. All questions must be submitted no later than October 2. 2017. All questions will be compiled and answered in the form of an addendum and will be emailed to all prospective bidders who return the RFP solicitation form attached and will be posted on the City of Dover web site, www.cityofdover.com. All changes or corrections to this Request for Proposal will be handled by addenda issued by the Purchasing Office. The receipt of all Addenda must be acknowledged on the proposal submission form. The City of Dover reserves the right to request corrections, clarifications, and/or additional information pertaining to Respondent's response. It has been determined that this solicitation be offered as a request for competitive sealed proposals, pursuant to Delaware Code Title 29, Chapter 6924 (a), because the use of competitive sealed bidding is not in the best interest of the City. The use of competitive sealed proposals is necessary to:
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Use a contract other than a fixed price type; Conduct Oral or written discussions with offerors concerning technical and price aspects of their proposals; Afford offerors an opportunity to revise their proposals; Compare the different price, quality and contractual factors of the proposals submitted. Award a contract in which price is not the determining factor.
Request for Proposal
Proposals will be opened publicly at the time and place designated in this letter. The name of each offeror shall be read publicly and recorded. All other information contained in the proposals shall be confidential so as to avoid disclosure of contents prejudicial to competing offerors during the process of negotiation. The main purpose of the bid opening is to reveal the name(s) of the bidder(s), not to serve as a forum for determining the low bidder(s). The contract shall be awarded within 120 days of the closing date to the offeror whose proposal is determined in writing to be most advantageous to the City. All prices must be held firm for a minimum of 120 days from the date of the opening. The proposals, summaries, and tabulations shall not be open for public inspection until after receipt of a fully executed contract. Conflict of Interest Clause: Pursuant to Dover Code, Chapter 30, Section 30-33, No city employee or official may participate on behalf of the city in the review or disposition of any matter pending before the city in which he has a personal or private interest. No city employee or official shall benefit from any contract with the city, nor solicit any contract, and shall not enter into any contract with the city (other than an employment contract). No person who has served as a city employee or official shall represent or otherwise assist any private enterprise on any matter involving the city, for a period of two years after termination of his employment or elected or appointed status with the city, if he gave an opinion, conducted an investigation or otherwise was directly and materially responsible for such matter in the course of his official duties as a city employee or official. All parties hereto declare and affirm that no officer, member, or employee of the City, and no member of its governing body, and no other public official of the City who exercises any functions or responsibilities in the review or approval of the undertaking described in this contract, or the performing of services pursuant to this contract, shall participate in any decision relating to this contract which affects his or her personal interest, or any corporation, partnership, or association in which he or she is directly or indirectly interested; nor shall any employee of the City, nor any member of its governing body, have any interest, direct or indirect, in this contract or the proceeds thereof. The City of Dover reserves the right to waive technicalities, to reject any or all bids, or any portion thereof, to advertise for new proposals, to proceed to do the work otherwise, or to abandon the work, if in the best interest of the City. All proposals are to be received by the Procurement Office, 710 William Street, Dover, DE, 19904 no later than the 2:00 p.m. bid opening. All proposals will be opened in the presence of the Procurement Manager or his/her designee. The name of each offeror shall be read publicly. All other information contained in the proposals shall be confidential so as to avoid disclosure of information prejudicial to competing offerors during the negotiation process. Any and all proprietary information contained within the proposal must be clearly marked. The cover must indicate that the proposal contains such information. Copies of the proposals will not be provided to competing vendors. Minority, women, veteran, service disabled veteran, and individuals with disabilities owned vendor preference shall be three percent (3%) of the value of the award. The vendor must identify qualification and claim to the preference on the submitted proposal documents. The vendor must provide authoritative proof of minority ownership such as identification in the certification directory maintained by the State of Delaware Office of Supplier Diversity to qualify for this preference. This preference is to be considered as a stand-alone and cannot be added to any other preference that may be allowed. This preference shall not apply to subcontractors. 2 of 4
Request for Proposal
In the event the contractor does not fulfill its obligations under the terms and conditions of this contract, the City of Dover may contract for an equivalent product on the open market. Any difference in cost between the contract prices herein and the price of open market product shall be the responsibility of the contractor. Under no circumstances shall monies be due the contractor in the event open market products can be obtained below contract cost. Any monies charged to the contractor may be deducted from an open invoice. Neither the contractor nor the City of Dover shall be held liable for non-performance under the terms and conditions of this contract due, but not limited to, government restriction, strike, flood, fire, or unforeseen catastrophe beyond either party's control. Each party shall notify the other in writing of any situation that may prevent performance under the terms and conditions of this contract. Vendors must provide references to the City of Dover upon request. Vendor references may be checked to verify the proposer’s ability to perform the contract requirements, the quality of work and the ability to meet obligations. Proposals must be submitted electronically by email using the email address [email protected]. The computerized date/time indication on the electronic submission will be the sole determination of receipt. All electronic proposals submitted by email must reference RFP number (18-0009CM) in the subject line of the submission or they will not be considered. Failure to comply with the above format may result in disqualification of your quote. The City of Dover shall have the right to reject any or all proposals if deemed to be in the best interest of the City, such as but not limited to local vendor preference and minority vendor preference while awarding bids. Sincerely,
Peter K. Gregg Contract and Procurement Manager City of Dover (302) 736-7795 Fax (302) 736-7178 [email protected] www.cityofdover.com
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Request for Proposal
REQUEST FOR PROPOSAL SOLICITATION NOTICE RFP Number: 18-0009CM
RFP Opening: October 20, 2017, 2:00 p.m.
Description: Electric Utility Cost of Service & Rate Design Study If you are interested in the request for proposal described above, you can download it in Adobe PDF format from our web site http://www.cityofdover.com/bid-procurement. Any amendments of other additional information related to this solicitation will be posted with the original document on the web site. If you do not have internet access and want to receive this request for proposal, all subsequent amendments, or additional information on the bid package, please provide the requested information to: The City of Dover Purchasing Office 710 William Street Dover, DE 19904 Fax: (302) 736-7178, attention Peter Gregg Phone: (302) 736-7795 e-mail: [email protected] Please complete the following and return this form to Central Services: Company: Address
Vendor Response /Request No bid at this time, please retain on bid list Please send complete RFP package
Contact:
I will download the RFP package
Phone
I intend to bid
Fax e-mail for ITB/RFP
I do not intend to bid
4 of 4
Other:
City of Dover
Request for Proposal (RFP) 18-0009CM For
Electric Utility Cost of Service & Rate Design Study
September 18, 2017
REQUEST FOR PROPOSAL
PROPOSAL DESCRIPTION
Electric Cost of Service and Rate Design Study
DUE DATE & TIME
October 20, 2017 @ 2:00PM Proposals received after this date and time will be deemed unresponsive and returned to the sender unopened.
MAILING
The City of Dover Purchasing Office 710 William Street Dover, DE 19904 Email: [email protected] Mr. Peter Gregg Phone (302) 736-7795 Fax (302) 736-7178 www.cityofdover.com/bid-procurement
ADDRESS
SPECIFICATION CONTACT
SCOPE
The City of Dover is seeking proposals for the completion of an electric cost of service and rate design study to include: electric cost of service, long term financial projections and recommendations, future rate design, and value of solar determination
THIS REQUEST FOR PROPOSAL ("RFP") PACKAGE INCLUDES THE FOLLOWING SECTIONS: •
GENERAL INSTRUCTIONS
•
SPECIFIC INSTRUCTIONS
•
SCOPE AND SPECIFICATIONS
2
GENERAL INSTRUCTIONS 1.
To be considered, all proposals must be received by the City of Dover not later than the due date and time. Any proposal received after the specified time shall not be placed under consideration. Proposals may be withdrawn, altered and/or resubmitted at any time prior to the time set for opening.
2.
Proposers are requested to submit each proposal via e-mail to: [email protected]. All emails must reference RFP number 18-0009CM in the subject line.
3.
Questions: Proposers are requested to submit; via e-mail using the format described below, any questions or clarifications they may have in reference to this RFP. TO: dov [email protected]. Dover representatives will respond via e-mail to e-mailed inquiries. All emails must reference RFP number 18-0009CM in the subject line.
4.
Proposals shall be reviewed and discussions conducted with responsible respondents who submit proposals determined to be reasonably susceptible of being selected for award. Discussion will not disclose any information derived from proposals submitted from others. Awards shall be made to the responsible proposer whose proposal is determined to be most advantageous to the City of Dover Electric Utility (Dover). Dover will, at their sole discretion, evaluate responsive proposals to determine which will provide the greatest value. Dover reserves the right to negotiate and contract with any firm it deems suited to provide the desired services. It also reserves the right to accept or reject any or all proposals, to waive irregularities and technicalities and to request resubmission of additional information.
5.
Documents Submitted: All documents submitted in response to this RFP become the property of the Dover upon delivery and may be appended to any formal documentation that would further define or expand the contractual relationship between Dover and the Proposer. Each Proposer, as an express condition for Dover’s consideration of such Proposal, agrees that the contents of every other Proposal are confidential and proprietary, and waives any right to access to such documents. No submission or supporting documentation will be returned to Proposer except as part of the contract with a successful Proposer. Those submitting Proposals should recognize that the Dover is a public body and, as such is subject to the disclosure requirements of Delaware’s public records law and must abide by those public record laws.
6.
Confidential Information: Any information provided, including knowledge of this RFP, is to be held strictly confidential and, upon conclusion of this process, destroyed in its entirety. Any breach of this confidentiality will result in automatic exclusion from consideration and all rights and remedies under the law will be pursued in full.
7.
Failure to comply with any of the instructions in this RFP package may result in the proposal not being placed under consideration for bid award.
3
SPECIFIC INSTRUCTIONS FOR PROPOSALS Contact Information: All correspondence concerning any questions about this RFP and its attachments, conflicts, errors, ambiguities, or discrepancies discovered by Proposer in or between the documents contained in the RFP or other relevant documents, shall be directed via e-mail to the City Purchaser, Mr. Peter Gregg ([email protected]). Failure on the part of any Proposer to make a careful examination of the RFP documents or to investigate thoroughly the conditions of the RFP shall not be grounds for a declaration that the Proposer did not understand the RFP package. Proposal Format and Organization: Proposals shall adhere to the following format: All pages shall be sequentially numbered and a table of contents shall be provided. The page size shall be 81/2 x 11 inches (Note: Tables and graphics can vary from this requirement). Information to be submitted: Proposals must include but need not be limited to the following information: 1. Sufficient information and detail shall be submitted with the proposal to permit Dover’s full understanding of the proposal offered. 2. Proposer shall include in the proposal a brief summary of their company's profile that identifies pertinent details for management of the activities described in this specification. Including: Company background, personnel, resumes of anticipated study team, relevant experience, and past and present client listing and references. 3. Provide a discussion of the proposed study deliverables, value provided to Dover and pricing structure. 4. Provide a discussion of the proposed study process, methodology, analysis techniques, data gathering. 5. Proposer shall provide a detailed study task list and schedule. 6. Discuss assumed expectations from customer including, but not limited to, project management available operating data and information availability. 7. Proposers should provide an anticipated "Table of Contents" associated with the final report. Proposal Evaluation: Dover will review all Proposals for completeness and adherence to the requirements of this RFP. All Proposals will be reviewed based upon the criteria contained in the following section of this RFP. Proposers must have the necessary experience, organization of team, and financial capability to fulfill the components of the Evaluation. Dover reserves the sole right to determine the sufficiency of the experience and qualifications of all Proposers. Specific factors for evaluation criteria have been established to assist Dover in determining which Proposal will provide the best overall value. These factors are listed below:
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Proposal Evaluation Criteria: Factors to be considered in the evaluation in addition to pricing include: a. Financial stability of organization b. The qualifications and experience of the lead person(s) and any other individuals assigned to the project, as well as the firm's depth of staff and availability of resources. c. Demonstrated record of firm's experience in the area of Utility Cost of Service and Rate Design d. Demonstrated understanding of situation and needs. e. Demonstrated ability to meet requirements of Scope f. Integrity/reputation of organization g. Experience in similar situations h. Proposed implementation process, and corresponding proposer's leadership during implementation. i. Overall completeness, clarity and quality of the proposal and responsiveness to the requirements of the RFP. Contract Price and Schedule: Dover is requesting the proposer provide fixed pricing for the work as defined in the services included in the Scope Section of this RFP. In addition to the pricing requested, the proposer is also requested to submit a timeline, with a final report delivery no later than February 28, 2018, and a project milestone payment schedule. RFP Proposed Evaluation Schedule: Presented below is the anticipated schedule of completion dates for the RFP Proposal Evaluation Process: Release RFP Proposal Submittal Deadline Utility Committee Approval City Council Approval Contract Awarded Final Report Issued
September 11, 2017 October 20, 2017, 2:00 p.m. November 14, 2017 November 27, 2017 November 28, 2017 February 28, 2018
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DESCRIPTION, SCOPE & TECHNICAL SPECIFICATIONS Purpose: The City of Dover Electric Utility (Dover) is seeking proposals from qualified consulting firms to complete a Cost of Service and Rate Design Study for the Dover’s electric utility. Included in this effort should be; long term financial review with projections and recommendations, electric cost of service, rate design review and recommendations, development of a "voluntary green pricing program" and a review of Dover billing and rate related policies. Background: The City of Dover Electric Utility is a municipally-owned Electric Utility operating within74 square-miles in Kent County, Delaware, including 24 square miles in city limits of Dover, Delaware that serves approximately 23,500 electric customers of which approximately 20,000 are residential. Currently, the Dover Electric Utility has 147 net MW of accredited generating capacity (2 generating units) which is owned and operated by the Utility along with several bi-lateral agreements for energy and capacity. The Dover Electric Utility served a monthly average of 23,621 accounts in fiscal year (FY) 2017, approximately 20,155 of which were residential customers. Five of the Electric Division customers take service from the 69-kV transmission system. These customers include the Dover Air Force Base, Kraft, Proctor & Gamble, White Oak Solar and NRG Energy Center (NRG). NRG is an exempt wholesale generator that sells power that must be transmitted through the City’s transmission system to third party purchasers. When the NRG plant is not operational, the Dover Electric Utility provides power for the plant site. Dover is a Network Integrated Transmission System customer operating in the PJM Regional Transmission Operator area. Fiscal Year 2017 customer mix is shown in the following Table 1. Table 1 — FY2017 Customer Classification and Revenue FISCAL YEAR 2017
ELECTRIC
R RESIDENTIAL CUSTOMERS
20,155 85.3%
COMMERCIAL & INDUSTRIAL CUSTOMER ACCOUNTS 3,466 14.7%
RESIDENTIAL CUSTOMER NET SALES REVENUE
COMMERCIAL & INDUSTRIAL CUSTOMER NET SALES REVENUE
$26,427,757 32.8%
$54,196,424 67.2%
The Dover City Council provides oversight and direction for utility operations as well as approval over rate and budgetary matters. Dover Operational Information: All past and current cost of service data and sales by customer class will be provided to the successful Respondent. Table 2, below, shows the sales and revenues associated with the utility for the past five years.
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Table 2 — Historic Sales and Revenue ELECTRIC SALES
ELECTRIC REVENUE
(MWh)
($)
Year' (6/30) 2013 2014
729,811 720,875
$91,948,000 $78,187,300
2015
723,111
$78,278,500
2016
713,334
$79,155,000
2017 unaudited
737,014
$80,100,300
i. Based on Dover’s fiscal year.
Scope of Work: Dover is seeking a comprehensive third-party review of the Electric utility financials. This review should the completion of a cost of service study and a rate design study to include the deliverables as listed below. Dover also would like copies of the modeling used. The development of a "voluntary green pricing program". The development of the above mentioned "green pricing program" should consider that the City of Dover Electric Utility is not regulated by the Public Service Commission. The City currently has a power supply agreement for solar with LS Power. Deliverables: Consultant will present to the Dover City Manager an interim report and the opportunity for comment that will include but not be limited to the following:
Electric Utility Revenue Requirements for test year Modeling assumptions Forecasts Cost of Service Electric Cost Unbundling Recommended Rate Adjustments Lighting tariff revisions for current tariffs as well as new tariffs for LED’s Review and discussion of Dover financial policies Preliminary rate recommendations and rate development description Preliminary rate assumptions and program recommendations associated with a voluntary green pricing program. Dover comparison of various rate classifications. Review of Dover’s Power Cost Adjustment Mechanism and recommendations for changes
Consultant will also present a final report including the items contained in the interim report to include Dover’s input. Consultant may be asked to present results to the City of Dover Utility Committee.
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